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Joint venture company takes over H’tota Port operations on Dec. 8

The Joint Venture Company formed between the China Merchant Port Holding (CMPort) Company and the Sri Lanka Ports Authority (SLPA) will officially take over operations of the Hambantota Port on December 8.

International Trade and Development Strategies Minister Malik Samarawickrema speaking at the post Budget Forum organised by Ernst and Young at the Hilton yesterday explained that they would receive USD 430 million at the time of taking over with the balance to be paid six months later.

In July of this year, the Sri Lankan Government signed an agreement with CMPort to sell a 70 percent stake in the Hambantota Port for USD 1.1 billion. This will be accompanied by a USD 5 billion Chinese funded Industrial Zone.

“Everything is in place and we have already received many proposals to set up industries,” Minister Samarawickrama further explained.

“Proposals have been received for a USD 3 billion oil refinery and a USD 125 million cement factory.Both will be joint venture projects with local partners,” the Minister said.

“The Industrial Zone is being set up and most of the land identified. Negotiations with the Chinese party are being held on the terms of agreement and we expect to conclude negotiations by the end of the year,” he further said.

The Industrial Zone too will have a 70 percent Chinese stake in it.

The Minister who participated at the Forum was also expected to fly to Singapore yesterday afternoon to finalize the FTA agreement with Singapore.

“We hope to have the FTA ready by January,”he said.

“The much discussed FTAs with India and China are expected to yield results by mid next year,” added the minister.